BIYI(SH:603215) Guotou Securities·2025-08-26 13:34Investment Rating - The investment rating for the company is maintained at "Buy-A" with a 12-month target price of 25.89 CNY [4]. Core Views - The company reported a revenue of 1.16 billion CNY for H1 2025, representing a year-on-year increase of 34.5%, while the net profit attributable to shareholders was 50 million CNY, down 21.0% year-on-year [1][2]. - In Q2 2025, the company achieved a revenue of 630 million CNY, a year-on-year increase of 16.1%, but the net profit attributable to shareholders was 40 million CNY, down 33.1% year-on-year [1][2]. - The company is expected to maintain rapid revenue growth by deepening relationships with existing customers and expanding its client base [1]. - The company is focusing on the production of air fryers and has seen robust growth in coffee machine sales, particularly with new orders from SharkNinja [1][2]. Financial Performance Summary - The company's overall gross margin decreased by 3.4 percentage points year-on-year due to increased competition in the small appliance OEM industry and a higher proportion of lower-margin coffee machine sales [2]. - The net profit margin for Q2 decreased by 4.5 percentage points year-on-year, attributed to increased marketing expenses and management salaries [2]. - Operating cash flow for Q2 increased by 110 million CNY year-on-year, primarily due to higher sales revenue [2]. - The company is positioned in the first tier of the heating kitchen small appliance OEM industry, with strong R&D, cost control, and production capabilities [2]. Earnings Forecast - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.71 CNY, 0.86 CNY, and 1.05 CNY respectively [2]. - The company is anticipated to have a price-to-earnings (P/E) ratio of 30 times for 2026, leading to a target price of 25.89 CNY [2]. Market Position - The company has successfully expanded its client base to include well-known domestic and international small appliance brands such as Philips and Supor, and is entering new markets like coffee machines [2].